Customs, Excise and Gold Tribunal - Bangalore
Idea Mobile Communications Ltd. vs The Commissioner Of Central Excise on 6 July, 2007
Equivalent citations: [2008]13STT99
ORDER T.K. Jayaraman, Member (T)
1. This appeal has been filed against the Order-in-Appeal No. 63/2005 ST dated 22.03.2006, passed by the Commissioner of Customs & Central Excise (Appeals), Cochin.
2. The appellant provides Cellular Phone Services to their customers. Further they availed input services of Internet Operator. They availed credit of service tax paid by the input service providers. The credit was utilized by them for payment of service tax for their out put services.
3. The Department proceeded against the appellants on the ground that they are not entitled for the credit of input service on the ground that the 'input' service and the 'output' service of the appellants fall under different categories.
4. On a very careful consideration of the matter, I find that the Revenue has justified in denying the credit. However, as the appellants were under a bonafide belief that they would be entitled for the credit, the imposition of penalty equal to the credit is rather harsh. Therefore while holding that the appellants are not entitled for the credit during the relevant period, I set aside the penalty. It is made clear that interest has to be paid by the appellants. The appeal is disposed in the above manner.
(Pronounced and dictated in the open court)